AUD/USD Price Forecast January 17, 2018, Technical Analysis

The Australian dollar drifted a little bit lower during the trading session on Tuesday as the Americans came back to work from the holiday. Ultimately, the market looks as if it is bullish though, but I also recognize that the 0.80 level above is very important. Typically, these areas take several attempts to finally break above, so it’s not surprising to see that we have pulled back. I believe the people will be looking at this market as one that is offering an opportunity to pick up value, but you need to be very patient as this market is going to be struggling just above. I also recognize that there is a significant amount of resistance extending to the 0.81 handle, and that is an area that continues to be crucial.

The 0.80 level is an area that has been massive in its importance, as the market has essentially used it as a pivot point going back decades. On a move above the 0.81 level, we have cleared a lot of resistance, and I think it becomes more of a “buy-and-hold” scenario, and then the traders will be looking to pick up and add to their position on short-term dips. At that point, the 0.80 level will be the “floor” in the trend, and therefore should continue to attract a lot of attention.

In the meantime, I expect dips to offer opportunities to get involved, as the market tries to build up the momentum to smash through this important barrier. Gold markets can break out simultaneously, that will be even better, as it gives us the opportunity to have fundamentals pushing the Aussie higher as well.

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